Skip to main content

tv   Martin Bashir  MSNBC  August 17, 2011 3:00pm-4:00pm EDT

3:00 pm
along and made it worse, but then we got fdr and fdr, man, he wasn't afraid of anything. wasn't even afraid of fear, fear itself, so he hired a bunch of people to paint murals and build schools and we mobilized and beat hitler and saved the world and that really worked. so america for the win. that's not quite how it wefnlt a still simplified but not quite as wrong version would sound something like this. in 1929 a bunch of old-timy looking stock brokers screwed up big time, much like what happened today. then the american crash precipitated a global crash, much as has happened today and then herbert hoover made it worse, china balanced the budget, among other things and contracting the economy. then fdr got elected on a platform not of mural-making but of balanced budgets, much as republicans did in 2010, and if they actually tried to implement those budgets it would have been a catastrophe, much as it would be to do now, but he didn't. he spent money, lots of money, and that helped, but if you talk to economists, it's not what they actually think ended the
3:01 pm
depression, and this is where things depart importantly from the grade school version. in 1933 fdr did something a lot of people didn't know about. he signed executive order 6102. doesn't that sound sinister? this did two things, both of which sounded nuts to modern ears. first, it forced every american to turn in all of the gold they had, pretty much all of the gold they had and get back 20 bucks an ounce and then it unilaterally said that gold would no longer be worth 20 an ounce and worth 33 an ounce so the government gave americans a bad deal. dollars back then were pegged to gold so what this did is made dollars worth less money, and though that sounds bad, it was actually a huge stimulus because it made our exports cheaper and more popular around the world, which meant we created jobs because we needed more people to build stuff to export. then in europe at the same time hitler was happening. this is the only way to put it and europeians were understandably terrified so they
3:02 pm
moved their money here and bought american stocks and bonds. that also acted as a huge stimulus. it did what the federal reserve should have done and hugely increased the amount of money floating around the economy. that brought down interest rates and raised expectations of future inflation, got businesses and consumer spending again. that's how we were getting out of the depression until 1937. that's when everything went wrong again. the recovery made fragile, but the federal reserve began pulling money back because it was worried about inflation. sound familiar? fdr began trying to balance the budget. sound familiar? and we plunged right back into recession. and today you can see some of the same bad ideas reasserting they will selves, balanced budgets are all the rage. republicans are threatening mob violence against a federal reserve if it doesn't begin pulling back money, and our recovery isn't just fragile. it's barely even begun. perhaps no one knows more about this period than christina romer, berkeley economist and great depression scholar who served as obama's first chief economic adviser. she joins me now from berkeley.
3:03 pm
dr. romer, good to have you here. >> it's wonderful to be with you, ezra. >> christina, the 1937 example always scares me because basically what happened is we were having fiscal stimulus, monetary stimulus and they both stopped and if you listen to the republican party today and even some democrats they are saying, look, we've had fiscal stimulus and monetary stimulus and we need to stop. they are done. are we doomed to repeat this? >> i sure hope now, but you're certainly getting the -- the sort of the ideas exactly right, and you can see where it comes from. you know, having studied the great depression i once thought how could they be so stupid? how could they have pulled back in 1937. we weren't done yet, but then if you watch in washington, this tremendous urge to get back to normal and the trouble is, you know, the economy is not back to normal so you can't get policy back to normal but you can certainly see where the instincts are coming, from and that's why it really takes i think some bold leadership so say wait a second. we can deal with both the budget
3:04 pm
deficit and the jobs problem, but we need to do it in a reasonable way, and timing is everything, and i think that is certainly what i hope is going to happen now. >> now, people sort of go to sleep when i say the words monetary policy and the federal reserve. i can sitting in this chair i can actually hear folks changing the channel and it's terrifying, but, still, this is a part that actually worries me. i sort of trust if a republican comes into power, he'll cut taxes so massively that there might be stimulus anyway, but a lot of these guys really seem to fear and misunderstand monetary policy, so in as simple terms as we can do. why shouldn't people like rick perry be afraid of the -- of the fed printing money right now? >> so i think, you know, the first thing i think we should all say is there's a reason that the federal reserve is independent, precisely because you don't want policy-makers or politicians coming in and moving monetary policy one direction or the other. you want monetary policy to be determined by the two things that the law says it should be
3:05 pm
determined by, ensuring price stability and ensuring maximum employment, that we keep the economy doing as well as possible, and, you know, i think, you know, i think governor perry is, you know, making a mistake, one, to be wading in on -- talking about what the fed should be doing but also not understanding what the current situation is. you know, the federal reserve has been very hesitant to be taking additional actions. they did the second round of quantitative easing, but then they really tried to say we're done. we don't want to do more, but they sort of i think have been dragged into thinking about some additional measures precisely because the economy is still, as you describe, very weak. we've had some very terrifying last few months in terms of the statistics, and certainly in what's happening on wall street, and i think we want the federal reserve to be doing what's right for the economy, and right now that is more monetary still plus, thinking creatively about ways that they can lower
3:06 pm
long-term interest rates, anything that they can do to get people investing, to get the economy growing again. >> and at the risk of -- let's dig into this even more. so the thing people be afraid to say when we talk about the federal reserve, we might need inflation. inflation in this country is a dirty word, stagflation in the '70s and '80s. the federal reserve is thought to be about fighting inflation and we don't want zimbabwe, 20% inflation, but one of the ways your research has shown we got out of the great depression is expectation is that future inflation would rise a bit so why would that be a good thing? why would the expectation of a bit more inflation coming down the pike be a good thing for the economy? >> well, let's do the case of the great depression. so what had been happening in the great depression is prices had been plummeting, right. huge deflation. everybody was expecting deflation and think about what that does to the cost of borrowing so the nominal interest rate, the interest rate you get, you know, the bank tells you, was about zero when fdr took office, but if you
3:07 pm
realize were you going to be paying back in dollars with more purchasing power because prices were falling, what you would say as a consumer or business is saying, wow, the cost of borrowing is really high even though the nominal interest rate was nearly zero. what fdr is committed to get prices back to what they were before the great depression, he changed the expectations so people stopped expecting deflation and started expecting a little inflation and that greatly reduced the cost of borrowing, the real cost of borrowing so people rightly said now is a great time to buy a car or businesses said this is a great time to build a new factory or one of my favorite, farmers, went out in mass numbers bought trucks, right, that that was kind of how they responded to the lower real cost of borrowing so that's a mechanism by which monetary expansion and some expectations of mild inflation instead of deflation can actually get the economy spending again, growing
3:08 pm
again. now when you come to today, i mean, i think what you described, the fed has invested 25 years in convincing us that they are not going to let inflation get out of control, and that certainly has been a good thing, so i think the real issue for today is, you know, how do you preserve that, that credibility, but maybe have a period where we have a little bit more inflation than -- than we're used to. that's why a whole bunch of economists are very interested in what's called a price level target, you know. we're used to saying the fed should -- well, let me just take a second. i don't think you'll lose all your ratings, but the idea is basically to say, you know, on average we want prices to go up by 2% a year or less than 2% a year, but if you have a period when they have gone up by a lot less than, that you can have another period where they go up by a little bit more than that and, you know, but you don't lose your credibility. everyone understands when you get back to sort of where you were, then you're still going to be having inflation very well
3:09 pm
contained, so i think that's -- that would be a sensible way to do something bold today that -- that could have some very good impacts. >> let's talk, too, about what the president and congress can do. were you in the white house and you heard that the president is thinking about bringing out a big new jobs plan in september. when you look at current situation, what are the things we can do that are the clear no-brainers and clear policies we can implement to help people get back to work now? >> so i think the first thing i'd say is, you know, and certainly be encouraging the president when i say think bold. i'd actually first think about, you know, what are the broad parameters of any package you want to come out with? i think the really important thing that needs to be, you know, a fair amount more, i mean, we're not supposed to say fiscal stimulus anymore but we need fiscal help for the economy in the near term, and the way you make that palatable for the
3:10 pm
fiscal market and good long-term financial help is pair that with more significant deficit reduction over time so i want to be bolder on both these dimensions. so some really good strong things for the economy to help get people back to work today and a lot more deficit reduction than was just passed in the fight over the debt ceiling, and so the -- the kind of things you put in that first piece, you know, of course, infrastructure should be there. i mean, that -- again, that's a no-brainer. we know how our roads and our bridges and our airports, there's just so much more we could be doing. if you spent money on that, you not only put people back to work now, you're left with something. you're left with a more productive economy and that's, you know, good for our long run economic growth, so that's a no-brainer. i think a serious kind of jobs tax credit, something that encourages firms to do what we want to do, which is hire people, so i wouldn't just give them a tax cut, because they are already sitting on so many -- so
3:11 pm
much cash, but give them a tax cut or a wage subsidy or something if they actually hire people, if they actually increase their payroll, and make it generous. don't make it some little stingy thing. make it a big generous subsidy if you hire people and that i think could get them to do what we want them to do and certainly when i was in the white house and -- and we worked the numbers on this, that's something that can have a really big bang for the buck, and so i -- i'd be wildly in favor of that. >> well, christina romer, we'll have to leave it there. we need to run to commercial, but we'll continue this conversation another day. >> okay. >> thank you so much for joining us. coming up, a new study shows us an unexpected truth about the tea party. just one phillips' colon health probiotic cap a day helps defends against occasional constipation, diarrhea, gas and bloating. with three strains of good bacteria to help balance your colon. you had me at "probiotic."
3:12 pm
[ female announcer ] phillips' colon health. oh, we call it the bundler. let's say you need home and auto insurance. you give us your information once, online... [ whirring and beeping ] [ ding! ] and we give you a discount on both. great! did i mention no hands in the bundler? bundling and saving made easy. now, that's progressive. call or click today. fiber one. uh, forgot jack's cereal. [ jack ] what's for breakfast? um... try the number one! [ jack ] yeah, this is pretty good. [ male announcer ] half a day's worth of fiber. fiber one. [ jack ] yeah, this is pretty good. living with the pain of moderate to severe rheumatoid arthritis... could mean living with joint damage. help stop the damage before it stops you with humira. for many adults with moderate to severe ra,
3:13 pm
humira's proven to help relieve pain and stop joint damage. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events can occur, such as infections, lymphoma, or other types of cancer, blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. before starting humira, your doctor should test you for tb. ask your doctor if you live or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your rheumatologist how you can defend against and help stop further joint damage with humira.
3:14 pm
3:15 pm
every great power has an origin story. superman came from crypton and badman's parents murdered before his very own eyes. >> ouch, something bit me. oh, it's just a spired. why do i feel so strange? so different? >> ouch, it bit me, so it is with the tea party. not the radioactive spider thing, the origin story thing. their origin started something like this. in 2009 ordinary americans, americans who had never given a thought to politics ever were so shocked and so appalled at the administration's expansion of government they spontaneously took to the streets and demanded change so you see something like this -- >> why doesn't someone pass a
3:16 pm
balanced budget amendment, we can pass that and nothing else. >> and as the story goes you're not seeing a political activist, you're seeing the voice of real america, but like most neat origin stories this is one is not, true. in today's "new york times," social scientist robert putnam and david campbell report on a study they conducted on american political opinions. 3,000 americans in 2006 were asked a battery of questions about their political beliefs and then this year they went pack to speak with them again. here's the cool part of their study. the tea party emerged right in the middle of the survey. nobody expected that, but that meant the researchers who were looking at the same people can go in and look at something that nobody else had the data to see what. did the people who joined the tea party believe before they joined the tea party? what set them apart from other voters and even from other republicans. the study found, quote, the tea
3:17 pm
party's supporters were highly partisan republicans long before the tea party was born. in fact, past republican affiliation was the single strongest predictor of tea party support today. so these are strong hard core active republicans, not previously disinterested folks, but wait, there's more. the tea party is usually described as an effort to shrink government, that that is what animates it, but the survey found, quote, the concern over big government is hardly or even the most important predictor of tea party voter. compared to other white republicans, quote, they had a low regard for immigrants and blacks long before barack obama was president and they still do. moreover, they care very much about social issues. another quote from the op-ed. next to being a republican, the strongest predictor of being a tea party supporter today was a desire back in 2006 to see religion play a prominent role in politics and tea partiers continue to hold these views. they seek deeply religious elected officials, approve of leagues leaders engaging in
3:18 pm
politics and want religion brought back into political debates. the republican elites don't want religion back in political debates and going too far in mixing religion and politics is also very unpopular. and give them their credit. republican leads have channeled this into anti-tax, economic issues that unite the party. notice the two republican presidential candidates competing most aggressively for the tea party's favor, rick perry and michele bachmann, are running religious campaigns. perry opened his campaign with prayers and prayer days and bachmann comes out of the christian conservative movement and that balancing act may be about to come undone. joining me now is e.j. dionne, great to see you. >> delight to see you, ezra is there. >> this survey helps me ask a question i've had some time, why is perry talking so much about religion when the party is focused on economic issues and the answer is he knows his base better than i do.
3:19 pm
is that your view as well? >> exactly right. public research from the brookings institute where i do some work and i did a study right before the 2010 election, we found exactly the same thing that bob putnam and david campbell did, that the apartment was far more religiously conservative than people thought. a lot of people thought they were kind of libertarian, some are libertarians but a lot are religious conservatives, and i think this goes back to a very prophetic piece our "washington post" colleague dan balz wrote 15 years ago. he was looking at the 1996 election and saw that in middle class suburban collar counties around places like philadelphia, cleveland, chicago, a lot of places that had been moderate to moderately conservative republican started voting democratic for bill clinton and al gore. a lot of those folks have left the republican party. they have become independents. some have become democrats. they don't vote in the republican primaries anymore, so the republicans are in a position where if you want to win that nomination, even though
3:20 pm
religious conservatives aren't a growing part of the country, they have become a very important part of the republican primary electorate so, yeah, rick perry does know what he's doing. >> so that then suggests a primary might be a bit tough on the national gop, right? they will have to have candidates pushing each other not only the right but the religious right and that's not terribly resonant. are they going to get out of that, or are wing if to see these folks taking positions when they come to the general election that will leave them in a tough spot? >> i think it's the latter, unless the economy continues to go down, because this very process that pushed some of those suburban moderates out, if the party veers right on social issues in these primaries, those voters want -- don't want to come back in. the exception was 2010 where some of those moderate voters started voting republican again because it was a sweep election and people were very angry, but i don't think we can count on 2012 being that sort of a sweep. you have to -- i think if you're a strategist you have to assume
3:21 pm
it will be a more normal election and i think this is a tension in the strategies of these republican candidates. >> and briefly, where does this leave a guy like romney? 20% of republicans say they are uncomfortable voting for a moral op. does that change when the mormon stops being a mormon in general and becomes a specific person like mitt romney or in a more religious primary he's facing a problem that's not going to go away? >> i'm persuaded he faced that problem in a big way four years ago, that there were a lot of christian conservatives who couldn't vote for mitt romney because of their views about mormons and mormonism. that seems to have dissipated some. he's hoping to use a strong economic message to push back against it, but i think you're going to see rick perry playing on that in subtle ways, and obviously i think you're going to see michele bachmann do it, too. >> always good to see you. >> always good to be with you, ezra. good to see you in that chair. >> coming up, can i call you joe. we check in with the vice president from china with love. [ male announcer ] this is the network. a network of possibilities.
3:22 pm
excuse me? my grandfather was born in this village. [ automated voice speaks foreign language ] [ male announcer ] in here, everyone speaks the same language. ♪ in here, forklifts drive themselves. no, he doesn't have it. yeah, we'll look on that. [ male announcer ] in here, friends leave you messages written in the air. that's it right there. [ male announcer ] it's the at&t network. and what's possible in here is almost impossible to say. new newtons fruit thins. real blueberries and blueberry brown sugar... crispy whole grain.
3:23 pm
newtons fruit thins, one unique cookie.
3:24 pm
newtons fruit thins, over time, my lashes thinned. after 40, i didn't have enough lashes. i'd heard of latisse® but had questions. my doctor said... latisse® is the only fda approved prescription treatment for inadequate or not enough lashes. now with latisse® my lashes are longer, darker, with more than double the fullness in 16 weeks. if you are using or have used, prescription products for eye pressure problems, use latisse® under close doctor care. latisse® use may cause increased brown pigmentation of the colored part of the eye which is likely permanent. eyelid skin darkening may occur which may be reversible. if you experience eye problems or have eye surgery, consult your doctor. common side effects include itchy eyes and eye redness. i trust latisse® and i use it too. my lashes changed as i got older. now i use latisse®. more than double the fullness in 16 weeks. are your lashes thinning as you get older? why wait? ask your doctor about latisse®
3:25 pm
from allergan, a company with 60 years of eye care expertise. politics gets depressing. it's gleam. it seems nobody gets along. they can't pass anything. the economy is terrible. the president seems like he can't get anything done. just can feel awful, but when things get so bad that i just can't take it anymore, in my house hold we have a peculiar drill. we look at picture of the vice president. yeah. there is something about joe biden's smile that just lifts a spirit. reassures me that everything might just be okay. i mean, who can resist a guy who look at you like that? but looking at some of these, joe biden turns out to be a man of many expresses. sometimes his mind is so full of intense thought that he just loses himself. he just freezes up, looks up into the air, but where you see goofy, i see hope.
3:26 pm
he's a man of confidence, a man not afraid to give the wrong burgundy when he knows he just nailed an important vp duty, but at the same time he's a man who can easily be caught off guard. he can even feel sad. he's somebody who oftentimes guess so ahead of himself and so focused on being the vice president that he doesn't even know what to do with his hands. just looks at them, and where is that smile right now? that smile is over in china to reassure them that their investments in the u.s. are still going to be safe. you keep smiling, joe. you've got a favorite biden moment or photo, share it with us on 72 hours in the life of rick perry. you're going to want to buckle up.
3:27 pm
a vacation on a budget with expedia. make it work. booking a flight by itself is an uh-oh. see if we can "stitch" together a better deal. that's a hint, antoine. ooh! see what anandra did? booking your flight and hotel at the same time gets you prices hotels and airlines won't let expedia show separately. book it. major wow factor! where you book matters. expedia.
3:28 pm
3:29 pm
how'd you learn to do that? what'd you use? every project we finish comes with a story built-in. it's how our rough ideas become "you did that yourself?" so when we can save more on the projects that let us fix, make, and do more... that just makes the stories even better. more saving. more doing. that's the power of the home depot. add some style to your sink, with this moen banbury faucet for the new lower price of $79.
3:30 pm
the narrative on day one of the rick perry campaign. perry is an unstoppable chuck norris-like figure who will round house kick his way through the republican primary and all the way to the white house. the narrative on day three of the perry campaign? what did you just say? considering that his campaign is only three days old, doesn't it seem as if rick perry has been doing a pretty remarkable job of confirming his reputation as a texas league chucklehead? i may not go so far as to say chucklehead, but it's a good term, isn't it, but the texan has been running more like an insurgent republican, more like an michele bachmann than like a guy thinking about the general election. first, of course, there was his threat of mob violence against ben bernanke? >> if this guy prints more money between now and the election, i
3:31 pm
don't know what y'all would do to him in iowa, but we'd -- we would treat him pretty ugly down in texas. >> you know when you know you've gone too far, when you draw rebuke from karl rove. >> governor perry is going to have to fight the impression that he's a cowboy from text ittias. >> then, perry suggested president obama maybe kind of sort of somebody should figure out if he loves america. >> you need to ask him. >> are you suggesting he does not? >> i'm saying you're a good reporter go ask him. >> and he suggested the military wouldn't respect a civilian commander in chief. >> one of the reasons, one of the powerful reasons that i'm running for the presidency of the united states is to make sure that every young man and woman who puts on the uniform of this country respects highly the
3:32 pm
president of the united states. >> and then he said we could solve the drug cartel problem on the mexican-american border by using drones. the only problem, we've been using drones for the last six years, and if he was governor, who cares, but the drones are flying around perry's state, you think he might have noticed. candidates who look good on paper don't always know how to tailor their appeal to the broad american middle but we have to see if rick perry is one of those. we're joined by alex wagner, an msnbc analyst and reporter for "the huffington post" and texas monthly senior editor paul bushlga. perry is doing well in polls and began with a rapturious reception and basically is running to the far right. does not seem like romney does to be running as the front-runner, as somebody who expects to face the general electorate. >> sure, and i think that's a pretty specific choice. he's not trying to be the
3:33 pm
establishment pick that looks good on the back of a quarter, a guy from texas who comes from an incredibly hardscrabble background, tough choices and has a quote, unquote tough economic record in texas that in theory has served him well and a lot of economists have debunked a lot of myths about the job creation he's overseen. rick perry does things rick perry's way. populated the texas statehouse with friends of his. he has a strong control over his administration. i think that the same is going to be true for this campaign. it's going to be done his way. >> and peter, you wrote a really fantastic piece for "the texas monthly" entitled dear yankee, eight things you should know about rick perry. i'll ask you this as a yankee or at least a californian. perry was dominant in texas politics for more than a decade now, but does he have the ability to bring his appeal beyond the state's borders? >> well, he has a personal appeal. perry is a great campaigner and has always been a great campaigner.
3:34 pm
that's what he's been known for. those in texas thinks that he enjoys campaigning more than governing, in fact, so, yes, i think that he can shake the hands, rouse the crowds. remember, he was a yell leader at texas a&m. that's somebody who is a professional rouser of crowds. he has those skills, but, of course, this is a different game. there's that question that was raised earlier about whether he could appeal to the middle. i don't think perry wants it appeal to the middle. i don't think that's -- that's never been his plan. his plan is i'm going to get as far to the right as i can and get as many people from that group as i can, and then try to make that my constituency, and it's worked for him in texas, absolutely. >> and that goes to one of the big questions about him is one way to look at all of this it's
3:35 pm
a lack of message discipline, a great story to tell on jobs. as you say, there are questions being raised by some economists about it. a good story, good lines, a clear story, one responsive to the current economic moment. and is he just stepping on that, or is has he made a decision to do, as peter said and as you suggested in your first answer, is go to the right, and if that's true, is that even a good idea in the republican primary because of instead of going after romney's voters it seems like he'll try to split with bachmann? >> there are a couple of things town pack there, ezra. one is, it seems like, yes, the economic message has taken a back seat to this kind of swaggering i run and shoot coyotes and snakes with a handgun when i'm jogging, and we all know what a yell leader is. that's evidence of his sort of charisma has come -- has in some ways eclipsed what he's done in texas. i think in the long run though you're going to see a strong pivot back to that message, both on the right and the left.
3:36 pm
look, the white house would love a discussion about the role of the government in public life. rick perry has a very, very different model than barack obama, and in that sense i can see both sides trying to push a broader debate on those terms. >> that does bring us to the role of government in perry's life, or at least under perry's control. peter, one of the parts of your piece i found really interesting is his great accomplishment is he was able to take the weak texas governorship and amass power, by amassing power and bringing allies into key positions. he was able to make it a strong governorship. can you give us the quick version here of what he did? >> what perry has done, and we did have a weak governorship, but he has taken his friends and his allies, and he has packed them in every state agency so that the -- the bureaucracy that would normally run the state doesn't run the state. the governor's office runs the state. he tells his allies what to do, and that's true from everything from the teacher retirement
3:37 pm
system, to the texas commission on environmental quality. perry gives the orders, and certainly it's true in education as well. so in agency after agency the governor is all powerful and the legislature just doesn't buck him because perry usually wins when they do try to confront him. >> something to keep in mind. thank you both so much for joining me. >> thanks, ezra. >> and we will be right back. it's the only complete multivitamin with ginkgo to support memory and concentration. plus vitamin d to help maintain healthy blood pressure. [ bat cracks ] that's a hit. one a day men's. [ ben harper's "amen omen" playing ] we believe doing the right thing never goes unnoticed. liberty mutual insurance. responsibility. what's your policy? he needs some gellin'.
3:38 pm
yeahhhhhhh. gellin' is like having a teeny tiny foot masseuse in your shoe. you like ? nice ! dr. scholl's massaging gel insoles. outrageous comfort, all-day long.
3:39 pm
3:40 pm
welcome back. page hopkins is in the newsroom with a look at the stories developing right now. >> hello, ezra. we have some remarkable and exciting news on the health front today. the fda just approved a new drug to treat the deadliest form of skin cancer. the drug to tackle melanoma is the first of its kind. it actually targets a specific gene that's actually found in about half the skin cancer
3:41 pm
patients, and, of course, skin cancer is the most commonly diagnosed kind of cancer, and in melanoma, the number one cause of skin cancer-related deaths. there's good news for you. back to you. >> always good to get some of good news. next an education mashup including education actor arne duncan, actor matt damon and every school in the country. we'll explain after the break. [ groans ] you okay?
3:42 pm
i'm not looking forward to my flight. try this. bayer aspirin? i'm not having a heart attack. it's my back. no, this is new bayer advanced aspirin... clinically proven to relieve tough pain twice as fast as before. what, did you invent this or something? well, my team did. i'm dr. eric first, from bayer. wow. look. it has microparticles. it enters the bloodstream faster and rushes relief right to the site of pain. better? great! thanks. [ male announcer ] new bayer advanced aspirin. extra strength pain relief. twice as fast. test our fast relief. love it, or get your money back. test our fast relief. woman: day care can be so to save some money, i found one that uses robots instead of real people. 'cuz robots work for free. robot 1:good morning... robot 1:...female child. sfx: modem dial-up noise woman: flaws? yeah, um, maybe. anncr: there's an easier way to save. anncr: get online. go to get a quote. 15 minutes could save you 15% or more on car insurance.
3:43 pm
3:44 pm
i'm hampton pearson with your cnbc market wrap. a look at how stocks are doing today. another roller coaster ride of sorts. early gains. now the dow in negative territory, down about 19 points. the s&p down 1.5 points, the nasdaq down just over 18 points. now, as inflation fears ratchet up, so are core producer prices. the farm and factory gate
3:45 pm
payments rose at their fastest pace in six months in july. they have been pushed up by higher tobacco and pickup truck costs, and there's a situation brewing with clothing store abercrombie & fitch. the fashion chain is offering to pay "the jersey shore" cast member known as the situation to stop wearing abercrombie clothes. the company fears the hard-partying character could cause, quote, significant damage to the company's image. that's it from cnbc, first in business worldwide. ezra, that's a real situation. back to you. >> thank you, hampton. i'm hoping somebody is going to pay me not to wear their clothes. i feel like i could do that. anyway, school is almost back in, but teachers going back to work are coming in under a pretty dark cloud. ask of all people matt damon. >> do you think job insecurity is what makes me work hard? >> well, you have an incentive to work harder. >> i want to be an actor. it's not an incentive. you take this mba-style thinking, right? that's the problem with ed
3:46 pm
policy, intrinsically paternalistic view of problems that are much more complex than that. like saying a teacher is going to get lays we they have tenure. a teacher wants to teach. i mean, why else would you take a [ bleep ] salary and really long hours and -- and do that job unless you really loved to do it? >> we in this country, i mean, all of us, even matt damon, turns out are in the midst of a great national debate about education, how to pay teachers, how to hire them, how to fire them. we're also in the midst of an incredibly weird policy crisis in education, and congress isn't doing anything about it. the problem is that 2001 no child left behind, mandates in 2014 pretty much every school has to have every student fully proficient in matt and reading. not going to happen. nobody passes every test, but if it doesn't happen the law says the schools effectively need to be taken over. everybody knew that that was going to fail, too high of an
3:47 pm
expectation, but the theory was the law would be updated, reformed, reauthorized in '07 or '08 or even if things got bad '09. nobody thought we'd be getting to 2011 and say we're still in this crisis. blame congress. the obama administration would like to update the law and so would many legislators in congress but the body is so deadlocked and distracted that education issues aren't moving. education secretary arne duncan said he'll move to plan "b" and grant schools waivers from the law. it's not a great solution really, but it can buy us some time until congress gets its act together and maybe it would even work. but is this really what we've come to? congress is so dysfunctional that it can't avert a policy crisis it created and has known is coming for ten years? and the best answer we can come up with is we'll have the education secretary essentially so frustrated that he is threatening to take the law into
3:48 pm
his own hands, that this is how little congress can do in education. if that's true, how are we ever going to get action done on any of the hard stuff. are we doomed to literally lagging behind matt damon on engaging in this issues. joining me is one of the smartest policy wonks i know. >> thanks, ezra. >> what happens if congress does nothing, arne does nothing and we just go forward? >> if we do nothing, up to 80% in the united states will be labeled as failing this coming school year, and that's stigmatizing for the schools, for the people who work in them, and no child left behind says states should be intervening in those schools, and it's just not realistic to expect states to intervene in 80% of all their schools, changing the principal or turning them over to a charter management organization. it's not realistic. >> and what about if we do duncan's plan "b?" part of the sticking point in order to qualify for the waiver schools would have to agree to
3:49 pm
abide by certain reform metrics. what types of metrics are they talking about? >> we don't know yet. they will announce them in september. we know what the obama administration likes to do on education and what they really hike to do is tie achievement data to teacher evaluation and pay, so they want to institute merit pay for teachers and principals and my guess is that that will be the main sort of carrot that they use to exempt schools from no child left behind. >> and my understanding is that we're not having this deadlock in congress because it's one of the issues where the two parties are dramatically far apart. a year or two ago the obama administration and members in congress said we won't see bipartisanship but one place you might see it on education. no child left behind was passed by george w. bush with the support of liberals like ted kennedy and miller in the house. what is happening now? why are we seeing this shutdown over the issue? >> certainly the debt ceiling crisis took up a lot of oxygen
3:50 pm
in washington. not a lot of time to talk about education in washington. there's an hour going up on in hours. the tea party has rushed the republicans so far to right on education, the tea party has really, mentioned earlier, of a christian conservative type of stance towards schools, with the government intervening and family intervening in what should be the local prerogatives of local people to control their schools. they're pushing the that existed about a decade ago. it's a whole new day for the republican party on education. >> which seems odd in a way. let's say we got it reauthorized, went to plan b. my expectation is we boo move to something like teacher pay or reforming, or some of the issues you heard matt damon talking about. where is the discussion expected to go next? just getting it updated seasonal moving us forward. it's simply preventing a crisis we created for essentially no
3:51 pm
reason. >> if the obama administration had their way, the update would be a teacher quality bill, a bill that had every school and state in the country tying student metrics to teachers performance, doing more with colleges to make teachers more competent. it doesn't look realistic right now, is because there are simply not republicans willing to come to the table and discuss the issues. >> it's easy to think we're completely standing still, but my understanding, in the background we have the rate to the top program going on. so the administration has stimulus, and i think simpson kept going with it and maybe got more money for it in the continuing resolution bills this year, i believe. they've had their own education reform program. what sort of effect does that have on the ground now? >> many states around the country, more than half the states have changed teacher tenure laws. the next round of race to the top is all about early childhood learning, so that's very positive.
3:52 pm
we're going to try to make nursery schools higher quality for lower-income kids. there's a lot going on on the ground. and the standards core initiative, 48 states are agrees for higher standards in reading and math that will be shared. this is the first time as a country we even experimented with that type of standardization. it's very positive. that will move forward, because governors are actually enthusiastic about that. >> you have a fairly large employment -- sort of a ran no child left behind in '04. in '08 there was more of a talk over teacher reform. do you expect. they both we are outspoken. mitt romney, who most people consider the front-runner has in
3:53 pm
the past loved this law. the standards worked, and he had a centrist bipartisan -- over the past year, he hasn't talked about it very much, because his party has moved to the right. you see that with bachmann, you see that with perry. they have a whole different conversation around schools. they see schools as places that are infringing upon parents' rights to control their kids. that's going to be a tough one for centrists republicans like romney to navigate. >> how about obama? >> i think he'll have the traditional position represented by people like george w. bush, represented like people like bill clinton or ted kennedy, saying we need higher standards, need teacher gatt reform, and the federal government has a big role to play. he's not going to back off of it. >> dana, i hope you have a good school year. on september 25th, we host the education nation summit with live events and panels at 30
3:54 pm
rock. it will cover all the shows and the platforms for the entire week. we will be right back to clear the air, and elvis is in the building. ♪ we can't go on together ♪ with suspicious minds i'm a raccoon.
3:55 pm
and this time in your attic has been the best week of my raccoon life. i'm digging, i'm nesting in this fluffy stuff. i've already had like four babies. i'm the smartest raccoon i know. and if you got your home insurance where you got your fifteen-minute car insurance, you could be paying for this yourself. [ laughs ] so get allstate, you could save money and be better protected from mayhem like me. [ dennis ] dollar for dollar nobody protects you from mayhem like allstate agents.
3:56 pm
3:57 pm
dr. scholl's custom fit orthotic center recommends the custom-fit orthotic that's best for your tired feet. foot-care scientists are behind it. you'll get all-day relief. for your tired achy feet. for locations, see thank you... it is time now to clear the air. we're in campaign season officially. a lot of people like to call it the silly season. it doesn't have to be, it shouldn't be actually. this stuff is important. it's a big deal. it's who will run the economy and the most powerful military on earth. the winner gets nuclear weapons. if it's going to be a time when we get to know these candidates and have a real discussion about the future of the country, we in the media have to stop wasting their time and our time on comments that don't matter.
3:58 pm
yesterday michelle gaffe-man made a mistake. was it a horrible mistake? she mixed up the day elvis was born, january 8th, with the day he died and/or depending on who you believed, boarded a spaceship and returned to his own planet. that day, of course, was yesterday. really? i'm supposed to care that she mixed up two important elvis dates? come on. give them a break. they're hoarse, tired, stressed and scared, and they will occasionally say stupid things, would you so would you and i in their circumstances. we do every day. does that tell something important about them. rick perry took a second to think about before he made it, and then stood by when he was questioned on them later.
3:59 pm
that displayed a complete misunderstanding of monetary policy, and that's important. but bachmann on elvis or where john wayne was born? that doesn't tell us anything. if she was running for the national pub trivia team, this would be important, but she's not. she's running for president for the united states of america. nowhere in the constitution does it say she is responsible or the president is responsible for getting elvis' birthday right. it doesn't reflect badly on michele bachmann. it reflects badly on us. as the king himself said, don't be cruel. dylan ratigan picks thing us up from here, what's you got? >> thank you, ezra. the show starts right now.


info Stream Only

Uploaded by TV Archive on